Contracts
A lease with an option to purchase gives the tenant the right to:
AAutomatically purchase the property at the end of the lease term
BBuy the property at a specified price within a specified time period✓ Correct
CSublease the property to a third party at a profit
DTerminate the lease early without penalty
Explanation
A lease with an option to purchase (lease-option) gives the tenant the right — but not the obligation — to purchase the property at a pre-agreed price within a specified time. The option consideration is typically non-refundable if the tenant does not exercise the option.
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